The sun. [volume] (Newberry, S.C.) 1937-1972, July 26, 1956, Image 2
PAGE TWO
THE NEWBERRY SUN
THURSDAY, JULY 26, 1956
1218 CoU*za Street
NEWBERRY, S. C.
PUBLISHED EVERY THURSDAY
0. F. Armfield, Jr., Owner
Entered as second-class matter December 6, 1937
at the Postoffice at Newberry, South Carolina, under
the Act of Congress of March 3, 1879.
- . ————————————————
SUBSCRIPTION RATES: $2.00 per year in ad
vance; six months, $1.25.
COMMENTS ON MEN AND THINGS
By SPECTATOR
I was called to the Clarendon County Memorial Hospital
a day or two ago. A friend who is ready to lend a hand, Mr.
Alton Eadon, called to say that there had been a disastrous
wreck, with death and other degrees of misfortune and that
our surgeons an nurses could not understand the patients,
all of whom spoke Spanish, co m ing from Barranquilla, Co
lombia, South America. Singularly enough one of the
men is Alberto Giesecke and I knew well a man by that
name in Peru.
Being called to interpret, listening to men and women,
then relaying in Spanish what the State Patrolman want
ed to know, as well as our own Chief of Police, Capt. Blease
Shorter, and the physcians and nurses, all this brought viv
idly to mind a somewhat similar call that came to me
about ten or twelve years ago.
A highly placed official of Uruguay was visiting cities
and institutions of our country as a guest of the Govern
ment. He spok4 no English, but wished to pay his respects
to all officials in the very courtly manner of the Latins. So
I was called in and accompanied the visitor in his calls on
the Governor, the Mayor, the President of the University,
the Superintendent of City Schools, and others.
I presented the Senor in each case, explaining in English,
then translating in Englsh his diplomatic eloquence; and in
response, I rendered into Spanish their gracious acknow
ledgments.
One of my friends in the Hospital wondered why anyone
would travel in a country without fair knowledge of the
language. I reminded him that, although I wrestled with
Spanish and French I made no effort to speak Dutch, though
I boldly travelled through Holland.
I read notes on business from many sources, but no re
port is more illuminating that the monthly letter from The
First National Bank of Boston, from which I am quoting:
“Some of the basic stimulating forces are gathering
strength. Business spending for plant and equipment is at
a record high, and is headed upward. Plans for business
expansion are on a longer-range basis than ever before.
Consumer spending, while not so dominating a force as it
was last year, continues upward, fortified by record high
individual income and a willingness to spend. Governmental
expenditures are steadily rising. In other words, spending
by the three major groups is on the upgrade, and this
should be a strong sustaining force. ,
The steel industry has produced more steel than was
consumed during the first half year.
The demand for capital and credit exceeds the supply of
available funds, and money rates are at the highest level
since the early 1930’s. The pinch came in the first half of
this year when record-breaking spending for plant and
equipment was superimposed upon the economy when it
was operating at near capacity. With a growing shortage
of materials and manpower, there was a bidding up of prices
and wages rather than an expansion of output,
j* Heavy borrowings have made it possible for the Ameri
can people to spend at a faster pace than the growth of
savings. Since 1946, the increase in total debt—public and
private—has exceeded national income for this period by
$111 billion, while last year the excess of increase in debt
was $23 billion, or nearly twice the annual average for the
last decade. Consumer credit and home mortgage debt
have increased more than fourfold since 1946 and now con
stitute 46 percent of disposable personal income as compar
ed with 19 percent in 1946.
The danger comes when there is a widening gap between
debt and income. This can eventually bring about a busi
ness recession which would make debt payments difficult
and in many cases intolerable.
A revival of thrift in this country is urgently needed.
Under-secretary of the Treasury W. Randolph Burgess re
cently observed that ‘Economic events in the United States
. . . give evidence that for its long-term growth the coun
try needs a higher rate of saving ... We need to develop
thrift and encourage it by attractive rewards’. Personal
savings last year were only 6.3 percent of disposable per
sonal income as compared with 7.3 percent for the preced
ing five years, while it is estimated that around 8 percent
is necessary for the dynamic growth of the economy. His
torical evidence clearly points to the fact that the degree
of progress of any nation is measured by its accumulated
savings. Without this fund, whereby producers’ goods—
tools, machinery, building, transportation, storage facili
ties, and the like—are created, mankind would still be in
a» primitive stage, eking out a precarious living from day
to day, the victim of capricious nature. Inasmuch as sav
ings involve waiting and the postponement of consumption,
confidence in the future and in the purchasing power of the
dollar is necessary in order that individuals may practice
thrift, and businessmen be willing to assume the risk of
directing their investments into productive channels.
Should there be a stoppage of savings, progress would
halt and then stagnate, as happened in our country in the
|.930’s, when the flow of capital funds was reduced to a
LAST UP
trickle. For the first time in our history there was no
gain for that decade in production, or in the well-being of
our people. It was held at that time by Keynes and his
followers that the country had reached maturity and was
suffering from ‘oversavings’ since there was no real out
let for investments. The Administration then in power, in
an attempt to promote recovery, proceeded to siphon off
profits into Governmental spending channels. During this
period, successful firms were penalized through a system
of extortionate, punitive, and discriminatory taxes, and a
hodge-podge of Government interference with economic
laws. Surtaxes on upper income groups soared and practi
cally eliminated the well-to-do from supplying venture capi
tal. To cap the climax, an undistributed profits tax was
enacted in 1936. The folly of this measure was so obvious
that it was subsequently repealed. The net result of these
pernicious measures w&s to destroy job money, with the
««/CREEPING INFIvATION" may
^ be a major domestic issue
before the summer is over along
the political hustings. According
to the records, despite the appar
ent increase in wages and income,
the income just cannot keep up
with the cost of living. And the
spiral for higher wages starts.
And, according to the econo
mists, there is a major and basic
reason behind this continual inch
ing up of the cost ef everything
the consumer buys, including serv
ices. And the answer adds up to
the tremendous increase in busi
ness mergers, and the subsequent
trend toward monopoly.
Here in the Washington climate,
It is almost considered “im-Amer
ican” to whisper a word against
private enterprise. But private en
terprise is one thing, and private
competitive enterprise is some
thing else. It is the lack of private
competitive enterprise which is
the baric cause of this creeping
inflation which is stifling consumer
purchasing power.
A large grocery chain, takas
over a smaller grocery chain, and
competition is Icrtcncd that much;
sad grocery prices inch up. The
automobile business is a prime
of why automobiles cost
so much today and why prices
for next year's models win be
higher. The prediction is that with
in a year there wffl be only Gen
eral Motors, Ford and Chrysler left
In the field.
The rate of mergers continues
to grow, and the smaller compe
titive firms disappear from the
business community, from banks
to the corner groceries. Around
the cities, branches of the huge
down-town firms are moving into
the suburban areas, smothering
out competition of the smaller
firms. The trend for suburban
living accounts for this new dan
ger to competition. As a classic ex
ample this column has watched the
grewth of a huge suburban center
near Washington in a area of new
homes. The shopping center con
sisted of some 30 or more small
business firms which readily filled
the needs of the area. However a
large downtown department store
moved in, constructing a huge de
partment store at a cost of about
$3,000,000. Within three months, 14
of the small business firms were
out of business with that many
store rooms vacant. Others are
hanging on, may make it, may
not; thus competition is stifled.
More bankruptcies added to the
growing list.
There is almost a frantic at
tempt in the congress to strength
en the laws governing monopoly
and mergers without much suc
cess. The Department of Justice,
charged with enforcement of anti
monopoly laws already on the
statute books, together with the
Federal. Tirade Commission, have
adopted a policy of winking at
violations by so-called "consent
decrees", or such actions as "stip
ulation agreements" instead of
outright prosecution.
One of the most flagrant ex
amples of this fetish of worshipping
at the altar of private enterprise is
the fight made by private electric
utilities against advocates of pub
lic power, of even the Rural Elec
tric Cooperatives. The only thing
private about an electric utility
is that it is financed by private
capital.
consequence that at the end of the decade there were ap
proximately ten million persons unemployed. The dismal
Record of the 1930’s should be a warning against the de
struction of capital savings by unsound tax laws.
During the last decade and a half, the wage price spiral
has had a corrosive effect upon capital savings by shrinking
the purchasing power of funds for promoting and expan
sion. This is clearly indicated in the steel industry. Since
the end of the war, the cost of iron ore, steel scrap, con
struction, and labor has more than doubled. In order to in
crease capacity by 40 percent in the last decade, it has been
necessary for the steel industry to raise capital investment
110 percent. The problem facing individual steel firms was
strikingly set forth at the annual stockholders’ meeting
of United States Steel Corporation. It was pointed out by
its chairman, Mr. Blough, that it would cost $64 million
today to replace a plant built for $10 million in 1930. While
$10 million has been recovered through depreciation allow
ances, there remains $54 million that must come from re
tained profits. It would be necessary to .have sales of
$600 million to earn gross profits of $112.5 million to pro
duce a net profit of $54 million^ in view of the 52 percent
tax levy. For replacement and new capacity for the next
five years, it is estimated that United States Steel must
spend $500 million annually. This amount exceeds its re
invested profits plus normal depreciation allowances^ for
1955—its record years—by $140 million. Should the cost
of new facilities rise at the same rate as in the past ten
years, then the shortage would be around $240 million.*
This graphic presentation of the financial problem facing
United States Steel is reflected in the situation in other
important industries in varying degrees.
If we are to attain our goal of dyna m ic expansion in the
face of a slackening in the growth of our labor force, a
tremendous amount of capital must be spent on new facilL
ties, new products, and processes, including research, auto
mation, and atomic power. Everything possible must be
done to insure adequate business savings, or seed money,
so that these facilities may be soundly financed on a large
scale since capital spending is the most powerful and con
structive force in economic progress. These funds center
around retained profits and depreciation allowances. The
amount of busmen savings is largely determined by tax
laws; retained earrings; by the corporate tax rate; and de
preciation alIowaiv s by the provisions of the Revenue
Act. While more liberal write-off provisions were made
under the Revenue Act of 1954, the chief beneficiaries were
those firms that participated in the defense facilities pro
gram while it was under expansion. Industries that did not
take part in this program, such as textiles, food processing,
several kinds of machinery, and the like, are reported to
face a shortage in investment funds.”
Q—Hm Congress done anything: yet with health insurance?
A—Nothing to speak of. The Administration bill which would provide a
Government AmH for reinsuring private insurance companies against
loss, intended to encourage extended health coverage, is still pend
ing. The Health, Education and Welfare Department recently sent
a bill to congress which would permit smaller health insurance
companies and non-profit associations such as Blue Shield and Blue
Cross to pool their resources in an attempt to develop improved cov
erage, but no action has been taken. This pooling of resources would
have to by-pass the anti-trust laws.
Q—If a veteran dies without selecting any option of payment, hew wffl
GI insurance be paid to the beneficiary?
A—It wifi be paid in 38 equal monthly installments. However the bene
ficiary has a right to choose some other method, so long as it is not
a lump sum payment.
Q Can you tell me how many volunteers are engaged tat the skywatoh
for tike Ground Observer Corps?
A—At present there are approximately 400,000. There are about 1,000,000
more trained for duty if needed.
Q—Bow many government employees are affected by the new Civil
gcfvtoe pay nisoi
A—About 90,000, plus new recruitments of about 4,T00. Increase will
mean about 912 Tr>mimn a year in salary increases. Them increases
apply only to engineers, physical scientists and other types of spe
cialists, such as chemists, meterologists, metallurgists,/actuaries,
some patent specialists. It is a move to stem the raiding of gov
ernment personnel in this field by private industry.
CROSSWORD PUZZLE
PUZZLE No. 404
/
r
SPRING ACTION . . . Hay rake tooth provides spring aotton and
closes latch on farm gate as soon as handle Is rslcaard. Latah As
heavy sliding member. One end of the tooth is sttsnhcd to the
tbo other to a fixed cross member of the gate.
ACROSS
1 Bird
7 Sick
10 Rotating
piece
13 Kind of shawl
14 Japanese
porgie
15 Tree yielding
caucho
16 Vestment
17 The .
strait between
New York
and Staten
Island
19 Things In
Isiw
20 The gums
21 Tune
22 Looks at
fixedly
24 Male fore
bears
28 Places
28 As it stands
(mus.)
29 Worker who
puts on ends
31 Line of
Juncture
33 Hindu chari
table gift
86 Levantine
ketch
38 Thailand
40 Malay pewter
coin
41 Perform
43 Peer
45 Prevaricator
47 Man’s nick
name
48 Sphere
60 Loyalist
S3 Let fall
94 Abound
56 Fastens
88 Kind of pastry
(PU
61 Turmeric
63 Grape juice
evaporated
to syrupy
consistency
65 Business
transaction
66 Tortoise
69 Withered
71 — Fail, Irish
crowning
stone
72 Silkworm
73 Express dis
approval
75 In music:
high
76 Years old
77 Norse god
dess of heal
ing
78 Gives
80 French plural
article
81 Signifying
maiden name
82 Trapped
DOWN
1 Measure of
capacity
2 Ribbons
3 Bone
4 Elbow
5 Withers
6 Eagles’ nests
7 Japanese
statesman
8 Regulations
9 Rosters
10 Edible berry
11 Opposed to
aweather
12 State of dis
order
13 Stop moment
arily
18 Estimates
23 Consumed
25 Close
securely
27 Cruise
30 Unruly out
break
32 Domestic
34 Form of
“to be”
35 Rabid
37 Shore bird
39 Place of trade
41 Period
42 Native metal
44 Malay dagger
46 Thoroughfare
49 Small juicy
fruit (pi.)
51 Leavening
compound
53 Church dig
nitary
55 Encountered
67 Increases
velocity
59 Followed
(slang)
60 Narrow
boards
62 Pertaining
to European
mountains
64 Incendiarism
68 Duck
67 Incite
68 A Great Lake
70 Heating
vessel
74 Native metal
79 Land measure
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Answer te Pusie Ne. 493
PaieCarmegie
^ AUTHOR OF “HOW TO STOP WORRYING AND START LIVING' ^
M rs. MARTHA B. FOWUE, 2813 Jefferson Avenue, N. E., Albuquer
que, New Mexico, who lived in Wiesbaden, Germany, after the war
stm feared an enemy attack every night. They were constantly remind
ed of dangers and perils by the packed suitcases, rations, alerts, and
mock evacuations. Fear became an obsession with her. She contracted
in her imngimMfw* every disease she had ever heard mentioned,
literally made herself sick, mentally and physically.
When her daughter was born, she wondered wheth
er the baby would be left like one of the poor, starv
ing, mangled orphans she saw every day. She feared
for die life of her husband who had been threatened
several times. Perhaps one of the ex-prisoners he had
sent to jail would seek revenge. Fear followed
her aboard ship when they went home. The 'boat might
sink—and she couldn't swim. Or she could see them
rolling later down the side of a mountain while driv-
ing across country.
Hef husband tried to laugh her out of her fears CARNEGIE
but with no success. Finally rise heard of living in Day-Tight Compart
ments, living one day at a time and letting the present day be that day.
She deckled she was going to make that day a happier day for all she
contacted. T^sat resolve, she says, revolutionized her life.
m
. From Wm Or—lta Hate News,
WeKebcre, New Hampshire: It
takes a few yean of living and
•one urn of fbm pooron of bbsor-
vatiott to gain perspective. And
than, all too often a nun's con
clusions are totaanoad by oofs
background and baste views on
very reasonable eost,
come into being.
The average men could not
afford a power mower, an out
board motor or a boat trailer.
And those In existence, used by
At rich, were far, far below the
present day units to durability.
We
not tattrtng about the
for these two clssses always get
by and ^ enjoy themselves. The
very well-to-do, because of the
diversity of investments always
took after themsolvec and have
leisure time. The very poor, taken
care of by Town, County, State
or Federal funds, 1 always have
time to hunt, fish, and sleep to
the sun.
Going back twenty-five yewp,
the average man worked a forty-
eight to fifty-four hour week and
none of the protection of unemploy
ment compensation and social
security •
Radio was still in the squawking
stage and televirion was a dream
in the minds of electrical engi-
teg man.
Air-conditioning was Utile used
and was expensive.
The automatic washing ms china
and the home freezer were shnply
on tiie drawing boards. Home in
sulation was just beginning t& be
available.
And so on through a dozen more
items.
Twenty-five years have brought
tremendous changes in the ease
of living, to security and in lei
sure time and in opportunities
for self advancement
Progress, both material and ed
ucational has been very real Only
when we look back over a span
of twenty-five years do we realize
the changes for the better that
have been made.
neers. ^ '
The opportunity to receive a
high school education depended
upon how near to a high school
a young person lived. There was
very little free transportation.
The Blue Cross and Blue Shield,
making hospitalization available at
On the other hand, it is possible
that Russian subs may pop up on
the Atlantic Coast some night in
the early morning hours and wipe
out every city from Portland to
Miami with short range guided
missiles, armed to atopoic war
beads. But that is another story.
YOUNG AT 73—Still in the grueling business of testing
automobiles at 73, Ab. Jenkins, veteran race driver, just
set a new 24-hour stock car distance record on the Bonne
ville Salt Flats in Utah. Under sanction of the National
Association of Stock Car Racing he drove a 1956 Pontiac
which covered 2,841 miles at an average speed of 118.375
miles per hour.
TRIPLE WINNER... Australia's'
Peter Thomson, 98, won British
Open Golf ehampkniship at 'Hoy-
lake, England, for third consecu
tive year. HOs 286 score topped
930 entrants from 29 nations, and
earned him 92,800.
This an' That
Outfielder BID Tattle of the
Detroit Tigers to saperstttloaa
tort not aka seme folks. Bffl likes
the usually dtotastefal number
"II". Tetfie recently asked the
Tiger management to let kfap
wear uniform No. II to the hopes
it t might snap him out of a bat
ting stomp. Seems he wore No. 19
while playing semi-pro ball to
Illinois and had good Inch . . •
Bin Lfflard of Chicago set a new
money earning mark In the 1956
ABC bowling tournament when he
earned 92,180.75. In 1955, Fred
Bojaok of Detroit won $2,068.33
J . . Ron Church, 21, recently
speared a 464% pound Mack sea*
baas near San Diego, CaL, thought
to be a record of the speotes for
a skin diver . . . The New York
Giants and the Baltimore Colts,
who do not meet to regular Na
tional Football Leagae season
play, have agreed to a pro season
exhibition football game at Boston
University field August 26 for the
benefit ef the Harry Agganls Foun
dation . . . John F. Warner, as
sistant track coach at the Univer
sity of Eauoas, has been appointed
head track coach at Colgate.